Credit unions trying to make auto loans more appealing to members include:
- Pacific Service CU, a $1.107 billion asset, Walnut Creek, Calif.-based credit union, announced it lowered auto rates and simplified its loan program. Qualified borrowers will receive rates of 5.79% annual percentage rate (APR) for terms up to 66 months, and 6.79% APR for terms of 67-84 months. The new rates apply to new and used vehicles, including boats, motorcycles and recreational vehicles. It also is offering a $100 incentive to members to refinance their existing auto loans.
- Fidelity FCU, a $30 million asset Sandy Springs, Ga.-based credit union, launched a new auto loan campaign for May, partnering with Enterprise Car Sales to offer loan rates as low as 2.9% on used cars. Fidelity has extended this offer to its members and to anyone who lives, works, worships, volunteers or attends schools in Sandy Springs.
- Elevations CU, a $757.9 million asset, Boulder, Colo.-based credit union, last week lowered its best rate on Harley-Davison motorcycles to correspond with the same rate as its automobile loans. Motorcycle purchasers can obtain rates as low as 5.49% with the credit union on Harley-Davidson motorcycle financing. "Because Harleys are a high-ticket item, financing has been a hurdle to ownership for a lot of people. It's not unusual to see loan rates in excess of 7% on these bikes," said Craig Burkhard, chief lending officer at Elevations.
During first quarter 2008, credit unions' vehicle loans outstanding declined at a 6% annualized pace, compared with a decline of 2% for the same period a year earlier, says Southwest Corporate Investment Services. Those loans increased less than 1% during all of 2007, Brian Turner, director of advisory services (News Now May 12).
courtesy of cuna.org